As the JUA is the insurance of last resort in the state of Texas, the Association does not operate like a standard insurance company in the voluntary market. Below are some frequently asked questions to further understand the JUA.

---

Why would a health care provider want to be insured through the JUA?

The health care provider is unable to purchase the desired Medical Professional Liability Insurance through the voluntary market.

Does the JUA compete with private insurers?

No, the JUA does not compete with private insurers. The JUA has rates generally higher than the private market, and an applicant must show declinations from two insurers to be eligible for coverage in the JUA.

Does the JUA employ or work with contract agents/agencies?

The JUA does not employ or contract agents/agencies.  Applicants (new and renewals) can either apply directly or choose to contract an agent/agency to handle submission of completed and signed applications to the Association on their behalf.  All agents/agencies submitting applications to us, must complete and sign the Producer of Record’s portion of the completed applications for our review to determine eligibility.

Who sets the rates for the JUA?

The Board of Directors of the JUA determines the appropriate rates through independent actuarial studies. All rates are subject to the approval of the Texas Department of Insurance.

Does the JUA participate in the Guaranty Association?

No, the JUA does not participate in the Guaranty Association, however, its member insurance companies and policyholders may be assessed to maintain solvency.

What are Policyholder Stabilization Reserve Funds?

The JUA is required to establish two separate policyholder stabilization reserve funds (PSF). The first is a fund for physicians, hospitals, and other health care providers. The second is a fund for nursing homes and assisted living facilities. Amounts in the Nursing Home PSF are State of Texas funds to be held by the Comptroller outside the State Treasury on behalf of and with legal title in the Department of Insurance.

How are deficits funded? If the JUA has a deficit, it must be recouped in the following order:

1. policyholder stabilization reserve funds 
2. a contingent assessment on policyholders, not to exceed the annual premium
3. an assessment on member company insurers. Insurers can recoup assessments by taking premium tax credits for the amount of assessment paid at the rate of 20 percent a year for five successive years or an additional number of years as needed.

Who regulates the JUA?

The Texas Department of Insurance (TDI) regulates the policy forms and rates of the JUA.